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Business Tax

Applicable Federal Rates for December

Thomson Reuters Tax & Accounting  

Thomson Reuters Tax & Accounting  

Rev Rul 2018-30, 2018-49 IRB

The Applicable Federal Rates for December 2018 are reproduced below.

Table 1
Applicable Federal Rates (AFR) for December 2018 
Period for Compounding
Annual Semiannual Quarterly Monthly
Short-Term
AFR 2.76% 2.74% 2.73% 2.72%
110% AFR 3.03% 3.01% 3.00% 2.99%
120% AFR 3.32% 3.29% 3.28% 3.27%
130% AFR 3.59% 3.56% 3.54% 3.53%
Mid-Term
AFR 3.07% 3.05% 3.04% 3.03%
110% AFR 3.39% 3.36% 3.35% 3.34%
120% AFR 3.69% 3.66% 3.64% 3.63%
130% AFR 4.01% 3.97% 3.95% 3.94%
150% AFR 4.63% 4.58% 4.55% 4.54%
175% AFR 5.41% 5.34% 5.30% 5.28%
Long-Term
AFR 3.31% 3.28% 3.27% 3.26%
110% AFR 3.64% 3.61% 3.59% 3.58%
120% AFR 3.98% 3.94% 3.92% 3.91%
130% AFR 4.31% 4.26% 4.24% 4.22%
Table 2
Adjusted AFR for December 2018
Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term adjusted AFR 2.09% 2.08% 2.07% 2.07%
Mid-term adjusted AFR 2.33% 2.32% 2.31% 2.31%
Long-term adjusted AFR 2.51% 2.49% 2.48% 2.48%
Table 3
Rates Under Section 382 for December 2018
Adjusted federal long-term rate for the current month 2.51%
Long-term tax-exempt rate for ownership changes during
the current month (the highest of the adjusted federal long-
term rates for the current month and the prior two months.)
2.51%
Table 4
Appropriate Percentages Under Sec. 42(b)(1) for December 2018
Note:    Under Sec. 42(b)(2), the applicable percentage for non-federally subsidized
new buildings placed in service after July 30, 2008, cannot be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit 7.74%
Appropriate percentage for the 30% present value low-income housing credit 3.32%
Table 5

Rate Under Sec. 7520 for December 2018

Applicable federal rate for determining the present value of an annuity,
an interest for life or a term of years, or a remainder or reversionary interest
3.6%
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